Ethereum Whales Gobble Up ETH as Retail Traders Fumble the Rally

While mom-and-pop investors hesitate, crypto's big players are loading up on Ethereum—betting hard on a breakout.

Whales vs. Minnows: The Divergence

Retail traders keep waiting for a 'dip' that never comes, while institutional wallets quietly accumulate. Classic.

The Cynical Take

Wall Street’s playbook remains unchanged: shake out the weak hands before the real move. Only this time, it’s happening on-chain—transparent as hell, yet retail still can’t read the signals.

Retail Skepticism Despite Price Surge

ETH’s current price recovery has been impressive. Over the last 30 days, ethereum has surged 53%, recently trading around $4,622—just 5.53% below its record high from November 2021. Despite this strength, social media sentiment shows a significant amount of fear, uncertainty, and doubt (FUD) among retail traders.

Santiment’s data indicates that bearish commentary on Ethereum still outweighs bullish posts. This “disbelief” phase often occurs when an asset rises despite persistent skepticism, a dynamic that can sometimes fuel further upward momentum.

“Traders have shown FUD and disbelief as the asset makes higher and higher prices,” Santiment noted, adding that current sentiment leaves “very little resistance” to Ethereum breaking new price records.

History of Sentiment-Driven Corrections

The analytics firm highlighted that market sentiment can act as a contrarian indicator. When traders become overly bullish, it can signal excessive greed, which historically precedes price pullbacks. Santiment pointed to examples on June 16 and July 30, 2025, when extreme bullish sentiment was followed by corrections.

However, the current rally is different. Instead of widespread greed, the market is seeing an abundance of doubt from retail participants. According to Santiment, this is creating an environment where larger investors can quietly accumulate without much selling pressure from other whales.

Whales Step In as Retail Sells

The on-chain data shows smaller traders parting with their ETH, while key stakeholders are “accumulating loose coins” during the rally. Santiment suggests that this transfer of supply from weaker to stronger hands could set the stage for Ethereum to “make history” in the NEAR future.

This is consistent with observations from Glassnode, another blockchain analytics platform, which reported that short-term holders are selling more aggressively than long-term holders. This trend often reflects a lack of confidence among newer investors who may expect a short-term pullback.

Recovery from Earlier Drawdown

Ethereum’s strong rebound is even more notable given the depth of its recent correction. In April 2025, ETH suffered a 60% drawdown from its January highs, falling below $2,000. Many traders saw this as a severe setback, but the market has since staged a dramatic recovery.

The recent surge has erased much of the year’s earlier losses, with ETH now just a few percentage points away from breaking its 2021 record.

Traders Divided on Price Outlook

Market sentiment may be skeptical overall, but some high-profile traders see the potential for Ethereum to MOVE much higher.

Crypto trader Ted argued that ETH is “about to break out of its 4-year sideways range” and criticized those calling for a top at this stage. Another trader, Inmortal, was even more bullish, suggesting that Ethereum is “escaping the force of gravity” and could be “ready for $10,000.”

These forecasts stand in stark contrast to the cautious stance of many short-term holders, underscoring the divide in market expectations.

The Road to New Highs

For Ethereum to break past its all-time high, the market will need to sustain momentum while avoiding sharp corrections. Santiment’s analysis implies that the current absence of widespread retail euphoria could actually work in ETH’s favor, allowing for a steadier climb without the overheated conditions that often lead to sudden reversals.

If whale accumulation continues and retail sellers run out of supply to offload, buying pressure could push ETH above $4,878. From there, technical traders WOULD be watching closely for psychological levels such as $5,000 and $6,000, with ultra-bullish projections reaching as high as $10,000 in the next cycle.

Conclusion

Ethereum’s rally toward its all-time high is unfolding in a climate of retail disbelief and whale accumulation. While short-term traders lock in profits and brace for a pullback, large investors are taking the opposite side of the trade, positioning themselves for potential gains.

History suggests that when skepticism dominates a rising market, it can create favorable conditions for further upside. If current sentiment trends persist, Ethereum could soon break into uncharted territory—possibly triggering a new wave of Optimism and higher price targets.

For now, the market remains in a delicate balance. A sustained move above $4,878 would mark a significant milestone for Ethereum, potentially validating the bullish outlook of those who see this rally as just the beginning.